2024 (9) TMI 487 - HC - Income Tax

Writ Appeal Dismissed: Court Upholds Alternative Remedy for Challenging Income Tax Assessment Order u/s 246A.

The Writ Appeal challenging the dismissal of a Writ Petition against assessment proceedings under Sections 147/148 of the Income Tax Act was dismissed by ... Assessment proceeding u/s 147/148 during pendency of Writ Petition - availability of alternative remedy u/s 246A - Assessment Order has already been passed during the pendency of the Writ Petition - HELD THAT:- Since the initiation of the proceeding under Section 147/148 of the Income Tax was sought to be challenged in the Writ Petition and meanwhile a final Assessment Order was passed on 24.3.2022 against which an alternative efficacious remedy was available to the Petitioner/Appellant to file an appeal under Section 246A of the Income Act, learned Single Judge is absolutely justified in holding that the Petitioner has an alternative remedy to file an appeal under Section 246A of the Income Act against the said Assessment Order dated 24.3.2022. We, therefore, decline to exercise our writ appellate jurisdiction to interfere with the impugned Order dated 7.10.2023 passed by learned Single Judge which appears to be just and proper. As Appellant prays that one month’s time may be granted to file an appeal and meanwhile the interim order passed by this Court may also be extended for a period of one month, which the learned Counsel for the Respondents has also graciously agreed to allow the Appellant to grant one month’s time to prefer appeal. We permit the Appellant to file an appeal u/s 246A within a period of one month from today and for the period of one month, the interim order dated 20.12.2023 passed by this Court shall remain in operation. Issues:Challenge to assessment proceeding under Section 147/148 of the Income Tax Act during pendency of Writ Petition, maintainability of Writ Petition post passing of Assessment Order, availability of alternative efficacious remedy under Section 246A of the Income Tax Act.Analysis:The Writ Appeal was filed against the Order dismissing the Writ Petition challenging the assessment proceedings under Section 147/148 of the Income Tax Act. The Single Judge had dismissed the Writ Petition as an Assessment Order was passed during its pendency. The Appellant argued that the Writ Petition should still be maintainable despite the Assessment Order. The Respondents contended that an appeal under Section 246A of the Income Tax Act was the appropriate remedy post the Assessment Order. The Court considered the arguments and the record before making a decision.The Writ Petition was filed on 11.2.2022 challenging the assessment proceedings and notice issued under Section 148 of the Income Tax Act. While the Writ Petition was pending, the Assessment Order was passed on 24.3.2022. The Appellant did not amend the Writ Petition to include the Assessment Order nor filed an appeal under Section 246A of the Income Tax Act. The Single Judge dismissed the Writ Petition on the grounds of an alternative efficacious remedy being available to the Appellant, i.e., filing an appeal under Section 246A within 30 days. The Court upheld the Single Judge's decision, stating that the Appellant had the option to appeal against the Assessment Order.Since the Writ Petition challenged the initiation of proceedings under Section 147/148, and a final Assessment Order was subsequently passed, the Appellant had the alternative remedy of filing an appeal under Section 246A. The Court found the Single Judge's decision justified in holding that the Appellant had the option to appeal against the Assessment Order. The Court declined to interfere with the Single Judge's Order, deeming it appropriate.The Court granted the Appellant one month to file an appeal under Section 246A of the Income Tax Act. During this period, the interim order passed by the Court was extended for one month as well. The Court emphasized that the Appellate Authority should promptly consider and decide on the appeal in accordance with the law, considering the time that had already elapsed since the Assessment Order was passed.In conclusion, the Writ Appeal was disposed of with the mentioned observations. The Court directed the release of a certified copy of the judgment to the parties upon application.